Energy Savings Opportunities Scheme (ESOS)

 

What is ESOS?

The Energy Savings Opportunity Scheme (ESOS) is a mandatory energy assessment initiative for large organisations in the UK. To comply, eligible businesses must complete emissions audits and report at least 90% of their total energy usage to the Environment Agency every four years. ESOS is comprised of four stages with strict deadlines for submission, and failure to comply can result in fines of up to £90k. With the ESOS Phase 3 deadline (December 5th, 2023) quickly approaching, it’s essential that you prepare accordingly to avoid penalisation. 

Implementing SECR and ESOS reporting framework is particularly important for organisations in Energy-Intensive Industries (EII), such as manufacturing and engineering. If you qualify, your business may be eligible for an exemption of up to 85% of Contracts for Difference (CfD) and Renewables Obligation (RO) charges.

If your organisation falls under the scope of ESOS, it’s likely you also need to comply with Streamlined Energy and Carbon Reporting (SECR) regulations, too. SECR differs from the Energy ESOS reports must be submitted annually, not just every four years, and has more UK-specific different requirements and qualification criteria.

Get in touch with our team of energy experts today to equip your business with robust consumption reporting strategies.

Why was ESOS introduced?

ESOS is an excellent auditing tool that allows operators to quickly identify ways to optimise efficiency, lower greenhouse gas (GHG) emissions, produce less waste, and significantly reduce gas and electricity bills. Simply switching to more energy-efficient light bulbs, ensuring computers are turned off when not in use, and installing the latest smart meters can make a substantial difference to your energy expenditures.

By demonstrating greater corporate social responsibility, you can attract more eco-conscious consumers, receive discounts on energy bills through other Ofgem schemes, and even encourage more employee engagement by raising awareness about the impact of climate change.

 

Qualification criteria for ESOS:

  • You have more than 250 employees, OR

  • A turnover of more than £44.1m or an annual balance sheet of at least £37.9m (€43m), OR

  • You are an overseas organisation with over 250 employees in the UK and pay UK income tax.

  • ESOS Phase 3 criteria will be determined according to the Bank of England on December 31st, 2022.

What are the ESOS deadlines?

  • Phase 2 (passed): December 5th, 2019
  • Phase 3: December 5th, 2023
  • Phase 4: December 5th, 2027

     

How can we help your business?

We understand how difficult it can be for businesses of all sizes to navigate the complexities of the energy sector, especially considering the introduction of so many new regulations and climate change initiatives.

Our team is committed to providing cost-effective energy efficiency and utility management solutions, enabling you to cut energy bill costs and reduce greenhouse gas emissions with comprehensive risk mitigation strategies. To learn more about how ESOS, SECR, and other climate change policies can affect your business, reach out to our team of energy procurement specialists today. 

What are other useful tools to prove ESOS compliance and improve my green credentials?

  • Apply for voluntary ISO 50001 and ISO 14001 accreditation.

  • Ensure compliance with Streamlined Energy Carbon Reporting (SECR).

  • Complete Carbon Trust and Green Deal audits.

  • Obtain Display Energy Certificates (DECs) and Energy Performance (EPCs) for commercial and private properties.

  • Provide Renewable Energy Guarantees of Origin (REGO), Renewables Obligations (RO) certificates, Guarantees of Origin (GoOs), and Fuel Mix Disclosure (FMD) information.